If you have been even remotely aware of the small business sales market in Central Florida, then you know there is something called a Visa, and we don’t mean the credit card. You see there is a very large ex patriot community here in Central Florida and a very large portion of them came here on what is known as an E2 Investor Visa.
There are some 40 plus countries that have treaty status with the United States. In short, an E 2 Investor visa allows the purchaser or investor to make an investment / purchase a company and gain status here in the US. Now here is where the games begin and things get complicated (unnecessarily by the way).
The question de jour is and always will be ‘does a business qualify for an e visa?’ If you visit the USCIS website www.uscis.gov you can easily link through to find the details pertaining to E2 visas. There you will find a wealth and shortage of information. You see there is no specifics (surprise) regarding revenue size, number of employees, employee type, lease or any other specific matrix. What the USCIS talks about is substantial investment. As a consequence of this vagary a cottage industry has risen up for attorneys and consultants around securing this coveted visa. What follows are some lessons learned and rules of thumb for both buyers and sellers to consider.
- Although its not supposed to be this way every consulate is not the same.
- The buyer, their source of funds, amount of funds and home country are as important to the visa as the company they are buying.
- W2 and 1099 employees are interchangeable…anyone who says otherwise needs to show you that in writing.
- You DO NOT need a lease to get a visa. Why should you create extra costs for yourself if its not needed? Again if someone tells you otherwise have them show you in writing.
- Business Plans can put a marginal business over the top into success when paired with a solid buyer with a solid background and funding
- Add Backs (other than those on the front of the tax return) are hard to sell at the embassy….remember your dealing with the government.
- The minimum I have found over the years as a target cash flow (front page only) is 40 to 50k.
- There is no path to Green Card from an E Visa
- As a seller you need to show a profit on your tax return and have good books and records…..be global….recognize that you have to sell to someone from another country with different accounting practices.
- As a buyer you need to think Cash Flow. You wont have a credit rating so your business needs to cash flow quickly.
- Your advisers need to know their role. Accountants are accountants, lawyers lawyers, brokers brokers….each has value each needs to.
- Visa Lawyer and Broker need to work together. If one cant communicate and has poor follow up you put the whole process at risk.
- Buy a business not a visa. Make sure the business is sound.
- https://yourfloridabusinessbroker.com